Businesses Moving From Checks To Cards
Visa USA has announced results from a recent survey concluding that 68 percent of the financial executives and cash managers surveyed plan to reduce their reliance on checks for commercial payments and that 63 percent plan to increase their use of corporate payment cards.
The results reveal many key trends regarding the use of checks versus corporate payment cards within the cash management process, including:“By removing checks and other costly paper-based elements from the cash management process, businesses are realizing a higher level of efficiency resulting in measurable cost savings,” said Darren Parslow, senior vice president, commercial solutions, Visa USA. “The marked decline in the use of checks, for both making and receiving commercial payments, indicates that today’s businesses are making greater use of electronic payment methods for a more streamlined cash management process.”
- 53 percent of respondents report using corporate payment cards to make payments, up from 41 percent in 2005.
- 40 percent said checks make up more than half of their company’s transactions when making payments, down from 66 percent a year ago.
- 44 percent said they utilize cards for receiving commercial payments, up from 27 percent last year.
- 92 percent of respondents said reduction of back office payment processing costs is influential in encouraging their company to make greater use of corporate payment cards.
The Visa Cash Management Survey was conducted by Survey.com over 10 days in August 2006 and involved the responses of 400 financial executives and cash managers from across more than 20 industries. The majority of respondents (85 percent) had annual sales of more than $50 million, of which 56 percent represented companies with sales of more than $500 million annually.
Add your comment... (note that all comments are reviewed before they're published)